Frequently Asked Questions

Qi treats macro variables as external forces that influence asset prices independently of company fundamentals. Our platform uses Partial Least Squares Regression (PLSR) to solve for how sensitive each security is to macro factors like GDP growth, interest rates, and credit spreads. This provides both post-trade risk analysis through Macro Risk tools (MFERM) and pre-trade valuation insights through our Macro Valuation tools.

Traditional models like Barra start with known exposures and estimate factor returns. Qi does the opposite—we start with observed macro factor returns and estimate each security's exposure to those factors. This approach powers both our risk attribution capabilities and our fair value analysis for individual securities.

Our analysis of hundreds of equity portfolios shows that 50-80% of quarterly returns can be explained by macro factors. Even the best stock-picking process is influenced by the macro backdrop—interest rates affect valuations, growth expectations drive multiples. Qi helps you separate genuine alpha from macro-driven performance and identify when securities are mispriced relative to macro fundamentals.

No, Qi complements style models. While style models show your value, momentum, and growth tilts, our macro analytics reveal how macro forces drive those style returns and individual security valuations. Used together, they provide a complete picture of what's driving performance and where opportunities exist.

Our platform enables you to monitor and control macro risk in portfolios while identifying mispriced securities. You can set macro risk limits, time gross exposure adjustments, use fair value gaps for entry/exit timing, and ensure idiosyncratic alpha isn't eroded by unintended macro bets. This helps avoid drawdowns during macro shocks while capturing valuation opportunities.

Yes. By systematically reducing Macro Share of Risk (MSR) and using our fair value analysis for better entry points, our platform helps make portfolios more resilient and better positioned. This protects against downside while enabling you to stay invested in attractively valued positions during market stress.

Our models use variance-covariance matrices with 90-day half-lives to forecast portfolio volatility and fair value ranges based on macro exposures. The Macro Share of Risk (MSR) metric inversely correlates with forward Sharpe ratios, while our Fair Value Gaps help identify mean-reversion opportunities in individual securities.

Qi insights translate directly into investment decisions:

• Adjust allocations based on changing macro sensitivities
• Use fair value gaps for timing entry and exit points
• Hedge specific macro risks rather than broad de-risking
• Build balanced portfolios avoiding concentrated macro bets
• Identify securities trading away from macro-justified levels

We group factors into three categories: Growth Expectations (GDP nowcasts, PMIs), Financial Conditions (yields, credit spreads, FX, commodities), and Risk Appetite (VIX, volatility measures). Factors are selected for economic significance, statistical persistence, and stability across market regimes.

Our analytics are available via API feeds, web interface, daily file drops, and through partner platforms including Omega Point, EDS, and GS Marquee. We integrate easily with existing systems and provide both risk attribution and valuation analysis in unified workflows.